News Column

North River Resources Shares Jump On Funding To Re-Open Namib Mine

July 4, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - North River Resources PLC Friday said it has signed a USD12 million project equity agreement with Greenstone Resources, providing it with the equity capital to re-open the Namib mine in Namibia, and bring the site back into production.

North River shares jumped 28% at the market open Friday, trading at 0.640 pence.

The mineral exploration and development company said the funding packaging will allow it to restart the company's Namib lead and zinc project, and site preparation and advanced construction planning will begin immediately, it said.

"It allows us to fast-track the development of the mine and provides a clear pathway to production in 2015," said Managing Director Martin French in a statement.

Under the investment agreement with Greenstone Resources, Greenstone has subscribed for an initial tranche of UUSD2.8 million worth of North River shares at 0.6 pence, and has agreed to provide up to USD8.9 million of equity in three further tranches at increasing prices to underpin growth in shareholder value.

Greenstone also has the right to nominate one director to board of North River.

Greenstone Resources is now the biggest shareholder in North River, having increased its shareholding from 2.41% to 18.36%.

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Source: Alliance News

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